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© 2016 Electric Power Research Institute, Inc. All rights reserved.
Candice Tsay
Senior Planning Analyst
Consolidated Edison of New York
Bruce Rogers
Technical Executive
Electric Power Research Institute
NASEO Annual Conference
September 12, 2016
Time and Locational
Value of Distributed
Energy Resources:
Methods & Applications
2© 2016 Electric Power Research Institute, Inc. All rights reserved.
Our Members…
450+ participants in more than
30 countries
EPRI members generate
approximately 90% of the
electricity in the United States
International funding of 25% of
EPRI’s research, development
and demonstrations
3© 2016 Electric Power Research Institute, Inc. All rights reserved.
Three Dimensions of EPRI’s Value
Thought Leadership Industry Expertise Collaborative Model
Independent
Collaborative
Nonprofit
4© 2016 Electric Power Research Institute, Inc. All rights reserved.
Electricity Sector 1.0 - Yesterday’s Power System
Residential
Commercial
Industrial
Bulk Power
SystemDistribution
System
One Way Power Flow
5© 2016 Electric Power Research Institute, Inc. All rights reserved.
Consumers Become
Energy Producers
T & D Becomes More
Controllable and Resilient
Generation Becomes
More Flexible
Loads Become More
Interactive and Dynamic
Two-way Flow
Electricity 2.0 – Enter Local Energy Resources
6© 2016 Electric Power Research Institute, Inc. All rights reserved.
Role of Distribution System is Changing
Distribution Planning Tools, Methods and Processes
Must Be Updated and Enhanced
• Expanding Role
• Increasingly
Complex
• Not Fully Prepared
to Address
• Understanding is
needed as more
DER is added
7© 2016 Electric Power Research Institute, Inc. All rights reserved.
DER Proceedings are Proliferating in More Than 20 States
8© 2016 Electric Power Research Institute, Inc. All rights reserved.
Austin Energy (2012)
California (2012)
Example: Average Avoided-Cost Values in Selected Studies
New Jersey / Pennsylvania (2012)
Colorado (2013)
Source: e-Lab 2013 Solar Study (a collection of several studies by others).
Methodologies and Results Vary Significantly
9© 2016 Electric Power Research Institute, Inc. All rights reserved.
California and New York Taking Progressive Actions
“The IOUs are required to define
locational benefits and optimal
locations for DER moving the
IOUs towards a more full
integration of DER into their
distribution system planning,
operations and investment.
– CA PUC Code 769, Aug 2014
“The more efficient system will be
designed and operated to make
optimal use of cleaner and more
efficient generation technologies and
will encourage substantial increases
in deployment of these
technologies...DER will become
integral tools in the planning,
management and operation of the
electric system.
– NY REV, Feb 2015
10© 2016 Electric Power Research Institute, Inc. All rights reserved.
What Issues Need to be Addressed?
• Avoided Costs – assumption that
all DER is economic to the
overall system costs
• Proposals – no common set of
standards to assess & compare
increasing amount of proposals
• Differences – every feeder is
different; every solution is unique
EPRI’s Efforts Will Focus on “What Matters Most” For
Assessment – Not “One” Answer
11© 2016 Electric Power Research Institute, Inc. All rights reserved.
Overview of Distribution Planning Process
Develop Forecast
Determine Capacity
Requirements
Evaluate Alternatives
Establish baseline assumptions:
Future load growth and loading profiles
DER growth
Distribution project deployment
Assess distribution grid capacity
requirements:
Meet projected load and DER growth
Maintain safety and reliability for end
users
Evaluate alternatives to
address grid needs:
Traditional utility solution
DER
Projected Distribution Capacity Deficiencies and Plans to
Address Projected Deficiencies are Identified
12© 2016 Electric Power Research Institute, Inc. All rights reserved.
EPRI’s Study: “Time and Locational Value of DER:
Methods and Applications”
Used the EPRI Benefit-Cost Framework
– Objective, Reproducible
– Assesses Impacts of Interconnected DER
– Generates Value/Cost to Society
Two DER Interconnection Scenarios
– DER only to meet all Load Growth
– DER at customer discretion
Actual Systems
– Actual Performance Date for baseline
EPRI’s Study Period: 2016-2025 to Align with Timeframe
Used by Distribution Planners
Note: Companion study conducted by Sue Tierney, The Analysis Group. “The Value of “DER” to “D”:
The Role of Distributed Energy Resources in Supporting Local Electric Distribution Reliability.”
13© 2016 Electric Power Research Institute, Inc. All rights reserved.
Hosting Energy
Capacity
Distribution System
Bulk System
Customer or
Owner
Cost/Benefits
Societal
Costs/Benefits
Benefit-CostScenario Definition
DER
Adoption
Market
Conditions
Resource
Adequacy
Flexibility
Operational Practices & Simulation
Transmission
Performance
Transmission
Expansion
System
Cost
Changes
Reliability
System
Assumptions
EPRI’s Integrated Grid’s Benefit Cost Framework
The Focus of This Study are the Distribution
System Elements
14© 2016 Electric Power Research Institute, Inc. All rights reserved.
Modeling and
Analysis Outputs
Economic
Analysis Outputs
Capacity upgrade
deferral ($)
Capital costs for
integration ($)
Change in O&M
expenses ($) and
shortened asset life
Distribution energy
losses (kW, kWh)
Distribution
($/kWh)
Distribution losses
(marginal – $/kWh)
Capacity requirement
(load shape changes)
Voltage regulation
Switched capacitor, tap
changer and regulator
operations
Protection
Capacity upgrades
Capacity
Deferral
($/kWh)
System
Losses
($/kWh)
Normalize to DER
Energy Production
Mitigation
($/kWh)
Benefit/Cost Analysis Considerations
Bottoms-Up and Circuit-by-Circuit
15© 2016 Electric Power Research Institute, Inc. All rights reserved.
Mesh Network System Illustration
(Con Edison)
Radial System Illustration
(SCE)
The Scenarios: Mesh Network vs. Radial Topologies
Two Examples Illustrate the Methodology for very
different systems
Time and Locational Value
of Distributed Energy Resources
NASEO Annual Conference
September 12, 2016
Candice Tsay
Sr. Planning Analyst
Distributed Resource Integration
Con Edison
Electric Distribution System
• NYC Metro Area
• 40% of the NY State electric peak
87% network
13% radial
Con Edison’s 64 distribution networks have varying
characteristics
Each network supplied from a substation
Range of sizes, typically:
• 12-24 feeders
• 250-750 transformers
• 7,500-100,000 customers
• 70-300 MW peak load
Animated illustration of network load changes over 24
hours of a peak day
Time
T&D deferral with DERs - Considering peak day load
profiles
Current Demand
Forecasted Demand
Network Expansion
Current Network Capacity
12 241 Hours
kW
Traditional Approach
• Expand infrastructure to keep up
with load growth
Time
Time
T&D deferral with DERs - Considering peak day load
profiles
The Brooklyn-Queens Demand Management Program (BQDM) is securing
41 MW of customer-sited DER to defer T&D investment beyond 2025
T&D deferral with DERs - Considering peak day load
profiles
Current Demand
Current Network Capacity
12 241 Hours
kWDER Portfolio Approach
• Assemble a portfolio of DER technologies
to shave peak
• Peak load duration matters
Thousands of customer-sited solutions
Time
The Brooklyn-Queens Demand Management Program (BQDM) is securing
41 MW of customer-sited DER to defer T&D investment beyond 2025
EPRI modeling reveals significant locational sensitivity in
the local distribution system
Network System: Multi-directional Power Flows
Constrained
transformer
A
B
Dispersion of DER
contribution from
point A
Neighboring
transformer
C
DE
Locational Sensitivity
Further
away from
violation –
the more
DER is
needed
Location
EPRI modeling reveals significant locational sensitivity in
the local distribution system
Location
Network
Transformer
In the network,
DER portfolios
must be tightly
situated near
distribution asset
to be effectivea
b
a b
DE
R c
apa
city (
kW
)
Overload
Study assembled DER portfolio based on technology,
customer, and system load curve characteristics
Benefit Cost Comparison
Illustrative BQDM Example
EPRI study compared costs to meet load growth using BCA
criteria: Traditional T&D vs DER portfolio
Cost to Meet Load Growth –
Traditional Utility Solution
Cost to Meet Load Growth – DER SolutionIn
cre
menta
l C
ost (c
ents
/kW
h)
Inc
rem
en
tal C
ost
(cen
ts/k
Wh
)
Systematic Application to DER Value Leads to Comparable
Results to Support Policy and Operations Planning
Benefit Cost Comparison
Immediate applications for the insights and methodologies
from this work
Value of DER
proceeding
NY PSC
Case
15-E-0751
• Formulating Distributed System Implementation Plans
(DSIP) – future “Non-wires Alternatives” projects
• DER compensation reform – “LMP+D”,
where “D” varies by location
28© 2016 Electric Power Research Institute, Inc. All rights reserved.
Time and Location Value of DER: Conclusions from Study
Comprehensive, consistent, and
transparent methods are necessary.
Net benefits of DER as an alternative
to conventional grid is hard to
generalize.
Time and locational impacts are key
determinants in valuing DER.
It takes a portfolio of DER to meet
system and customer needs and
defer traditional assets cost-
effectively
29© 2016 Electric Power Research Institute, Inc. All rights reserved.
What Is Still Needed?
Planning processes and
tools must transition to fully
incorporate DER and their
potential value.
Detailed engineering
studies needed to capture the
important nuances in how DER
can be accommodated.
Grid modernization will also be a critical to
sustain the safety and reliability of the distribution
system, minimize overall system cost, and
maximize benefits from DER.
30© 2016 Electric Power Research Institute, Inc. All rights reserved.
Together…Shaping the Future of Electricity
For more information contact:
Bruce Rogers, [email protected] or
Deana Dennis, [email protected]
